CHANNAMMA RACHAPPA SARADAGI,BAGALKOT vs. INCOME TAX OFFICER, WARD-6(3)(1), BANGALORE

ITA 2065/BANG/2025Status: DisposedITAT Bangalore23 February 2026AY 2022-23Bench: SHRI PRASHANT MAHARISHI (Vice President), SHRI SOUNDARARAJAN K. (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that additions for unsecured loans were not sustainable as they were mostly opening balances and not fresh credits. The disallowance of interest on MSME/gold loans was incorrect as the loans were for business purposes. The disallowance of salary expenditure was also not justified given the supporting documentation provided.

What were the facts?

The assessee, a proprietor of a transport business, appealed against additions made by the Assessing Officer (AO) and confirmed by the CIT(A). The additions pertained to unsecured loans, disallowance of interest on MSME/gold loans, and disallowance of salary/wages.

What were the issues?

Whether unsecured loans, interest on MSME/gold loans, and salary expenses were correctly added/disallowed by the revenue authorities.

Which sections of the Income-tax Act were involved?

Section 68,Section 36(1)(iii),Section 37(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH : BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SOUNDARARAJAN K.

For Appellant: Shri Siddesh N Gaddi, CA
For Respondent: Shri K. Saravanan, Addl.CIT (DR)(ITAT), Bengaluru
Hearing: 28.01.2026Pronounced: 23.02.2026

Per Prashant Maharishi, Vice President

1.

Captioned appeal for Ay 2022-23 is filed by Mrs. Channamma Rachappa Saradagi against the appellate order passed by the National Faceless Appeal Centre, Delhi (NFAC) [ld. CIT(A)] dated 29 August 2025 wherein the appeal filed by the assessee against the assessment order dated 22nd of March 2024 passed under section 143 (3) read with section 144B of the Income Tax Act, 1961 [the Act] passed by the learned assessing officer was dismissed. Therefore the assessee is in appeal before us.

2.

The grievance of the assessee is with respect to the (i) confirmation of addition

The order continues below.

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